New Delhi: In a major sop to the middle class, the interim Finance Minister Piyush Goyal today exempted up to Rs. 5 lakh from paying income tax.

With this announcement, the tax burden on the taxpayers will be reduced. Goyal said about 3 crore tax payers would stand to benefit from this.

The finance minister also raised standard deduction to Rs 5,0000. The finance minister also said that individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities.

For the benefit of the retired employees and the senior citizens, he said there would be no TDS on post office savings up to ₹40,000.

There would be no TDS on rental income up to ₹2,40,000 per year, he said.